Niit Limited · NSE:NIITLTD
Niit — Investor Presentation (December 2011)
50 slides from Niit's investor presentation, December 2011
Slide 1: Investor Presentation December 2011
Investor Presentation December 2011 1
Slide 2: Agenda
Agenda • Education & Training: Landscape • Company Overview – Individual Learning Solutions – School Learning Solutions – Corporate Learning Solutions – Skill Building Solutions • H1FY12: Results Update • Sharpening The Edge 2
Slide 3: Education & Training: Landscape
EDUCATION & TRAINING: LANDSCAPE 3
Slide 4: India: Long Term Outlook
India: Long Term Outlook Demographic Dividend • Young nation with 54% of population under 25 years of age • Trillion dollar economy expected to Growing Economy grow @ 7% - 8% pa • Expected to cross $27 Trillion in 2050 Global Workforce requirement • Global shortfall of 56 million by 2020 • India wil
Slide 5: Massive Gaps Exist In Access & Quality
Massive Gaps Exist In Access & Quality • Low workforce productivity • Low capacity for skills training • Acute skills shortage & unemployment • Low employability • Low coverage of vocational skills taught Education & Training will remain and important 5
Slide 6: Education & Training: The Emerging Environment
Education & Training: The Emerging Environment The Emerging Framework Planned Outcomes • National Skills 10,000 new vocational schools Skills Development Corporation 50,000 skill development Development • Target: vocational skills to centers 500 Mn people by 2022 Revamp of ITIs Public Privat
Slide 7: NIIT In The Emerging Environment
NIIT In The Emerging Environment NIIT’s Strengths Current Engagement • Long standing brand ILS-IT: IT and Soft Skills • Best in class domain IFBI: Banking, Finance, Insurance Skills partnerships Uniqua: BPO/KPO Skills Development • Content creation Imperia: Management education capability NYJ: Voc
Slide 8: NIIT In The Emerging Environment
NIIT In The Emerging Environment NIIT’s Strengths Current Engagement Tie up with 100+ universities • Institutional Joint certification and dual Higher alliances models qualification programs Education • Global linkages IGNOU partnership for degree programs NIIT Inside solutions • Best in cla
Slide 9: NIIT: Market Leader with Strong Credentials
NIIT: Market Leader with Strong Credentials • One of the largest providers of vocational and professional skills worldwide across various service sectors. Acknowledged market leader in India • Leading player in the school education segment in India. Positioned to take strong advantage of the emergin
Slide 10: Company Overview
THE EDGE COMPANY OVERVIEW
Slide 11: IT Training To GTD
IT Training To GTD Training and IT Services CLS business Global Talent CAGR >50% + Development Key Competencies Company SLS Developed: - Pedagogy - Management of ILS distributed delivery process, - Partnerships Launch of IFBI & Imperia Pioneered Demerger of Launch of Franchising in IT Services Train
Slide 12: Servicing The Full Labor Supply Chain
Servicing The Full Labor Supply Chain Individual Learning School Learning Corporate Learning Solutions & Skill Building Solutions Solutions Solutions Target Audience School children Young adults Working professionals Value Proposition Academics Employability Productivity Customer School Individual C
Slide 13: NIIT: Last 5 Year Financial Track Record
NIIT: Last 5 Year Financial Track Record Rs Mn Revenue EBITDA CAGR: 23% CAGR: 21% 1569 1593 11486 11993 12483 1186 10068 1036 7951 774 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 Dividend Payout CAGR: 16% ˃ Number of Shares Outstanding: 214 214 231 248 143 165 million (FV of Rs 2 each) ˃ Last
Slide 14: Capital Structure
Capital Structure Total Capital employed – Rs. 10,232 million • No of Shares – 165.1 Mn Secured • Face Value – Rs. 2 per share Debt 28% Unsecured Reserves Debt 58% 11% Equity 3% Public, 27% Promoters, 34% Invest ments DMF and FI, Cash 18% 10% 4% Net Current Assets Net Fixed FIIs, 28% 19% Assets* 60%
Slide 15: Businesses
THE EDGE BUSINESSES
Slide 16: Individual Learning Solutions
INDIVIDUAL LEARNING SOLUTIONS 16
Slide 17: IT Training
IT Training • Improving individual employability in IT Sector • Career, Career-edge and skills upgrade courses for Technology Partnerships* individuals • For Engineers, Science / Arts /Commerce graduates, working professionals • Instructor-led, supplemented by e-learning • India, China, Developing W
Slide 18: IFBI - Finance, Banking & Insurance Training
IFBI - Finance, Banking & Insurance Training • Career, Career-edge and Skills upgrade courses for individuals IFBI: Partnerships* • For graduates and working professionals • Instructor-led, supplemented by e-learning *Selected Creating job ready professionals for banking, insurance & financial servi
Slide 19: NIIT Imperia - Management Education
NIIT Imperia - Management Education • Executive management education for individuals • Career upgrade courses for working professional Imperia: Partnerships* • Synchronous learning delivery model • Instructor-led, supplemented by e-learning *Selected Enhancing reach of quality management education 1
Slide 20: NIIT Uniqua - Business Process Training
NIIT Uniqua - Business Process Training • Joint venture between Genpact & NIIT Partnerships* • Career, skills upgrade courses • Offers training to meet the growing requirement for professionals skilled in business/knowledge process outsourcing sectors *Selected Creating skilled workforce for the ITE
Slide 21: ILS: Our Reach
ILS: Our Reach • India : 631 Centers • China: 192 Centers • ROW: 159 Centers 21
Slide 22: School Learning Solutions
SCHOOL LEARNING SOLUTIONS 22
Slide 23: Schools: Opportunity Space
Schools: Opportunity Space • Teachers Training - 10 million Teachers 24x7 3,000 schools • Vocational Education - is an emerging Collaboration Portal area ERP 100,000 schools Math LAB & Science LAB IT Education Class Room 1 Mn schools Products and services for improving school education 23
Slide 24: SLS: Our Reach
SLS: Our Reach 9,591,463Students 396,449Teachers 107,209 Nodes 23,936 Hrs of Content 45,685 Private and Government Schools Instructors Private Schools 16,689 Schools Cumulative NIIT has the widest reach in the market 24
Slide 25: NIIT nGuru Solutions Portfolio
NIIT nGuru Solutions Portfolio Interactive Class Room Math Lab Science Lab Quick School (ERP) Web & Multimedia curriculum Shared computing Widest range of offerings 25
Slide 26: Corporate Learning Solutions
CORPORATE LEARNING SOLUTIONS 26
Slide 27: Corporate Training Market
Corporate Training Market US Corporate Training Spending 55.8 58.5 56.2 51.1 48.2 48.9 $Bn Global training spend $100Bn+ Source: IDC, Bersin & Associates 2005 2006 2007 2008 2009 2010 • Recovery underway as organizations move from crisis management to future planning • Increased share of E-Learning
Slide 28: Corporate Learning Solutions
Corporate Learning Solutions Managed •Recurring revenues, long term partnerships Training •Multi year, multi geography relationships Services •Opportunities in India growth sectors •150+ customers; 49 in Fortune 500 •Continue to maintain leadership position in Custom content development Projects •Es
Slide 29: Top brands considered when choosing a learning vendor
What are the top three brands you think about when considering a vendor for learning products and services? Unaided; CLO Magazine 0 5 10 15 20 25 30 35 40 45 SkillSoft Element K Other / Proprietary Depends GeoLearning HBP / HMM Learn.com Accenture NIIT Ninth House SumTotal Adobe AMA ASTD DDI Kaplan
Slide 30: Skill Building Solutions
THE EDGE SKILL BUILDING SOLUTIONS
Slide 31: Skills Development: Emerging New Area For NIIT
Skills Development: Emerging New Area For NIIT India needs 500M people to be skilled by 2022; current capacity <5M p.a. National Skills Vocational Vocational Specialized Development Education Training Training Corporation 50M 175M 125M 150M • Only 3% (9,600 • Driven by Ministry. Of • Each ministry i
Slide 32: NIIT Yuva Jyoti
NIIT Yuva Jyoti • Incorporated NIIT Yuva Jyoti in 90:10 equity partnership with NSDC • To Transform over 7 million unskilled youth into readily employable professionals • Segments addressed: IT/ITES, Media & Entertainment, Education & Training Services, BFSI, Retail, Hospitality, Healthcare, Telecom
Slide 33: H1FY'12 Results Update
THE EDGE H1FY’12 RESULTS UPDATE
Slide 34: Environment
Environment Tight monetary policy and sticky inflation dampening growth momentum. India GDP growth projected to slow to ~7.5% Global volatility affects hiring outlook across sectors in India. Net Employment Outlook at 30% (down 8 percentage points YoY): Manpower Employment Outlook Survey Domes
Slide 35: H1FY'12 – Financial Highlights
H1FY’12 – Financial Highlights Consolidated System wide revenues Rs 10,927 million, up 12% YoY. Net Revenues at Rs 7,050 million, up 13% YoY. EBITDA Rs 867 million, up 6% YoY Profit before Tax Rs 234 million Operational PAT at Rs 226 million, up 11% YoY Profit after Tax Rs. 433 million K
Slide 36: H1FY12 - Awards & Recognitions
H1FY12- Awards & Recognitions NIIT recognised as India's second most trusted education brand by Brand Equity-Nielsen survey 2011 NIIT ranked among Top 25 “ India’s best company to work for” and ranked 1st in Training and Education Industry NIIT’s Skill development project in Republic of South
Slide 37: H1FY12 Consolidated Financials
H1FY12 Consolidated Financials (Rs. in million) H1FY12 H1FY11 YoY (%) System wide Revenues 10,927 9,757 12% Net Revenues 7,050 6,238 13% Operating expenses 6,183 5,420 14% EBITDA 867 819 6% EBITDA% 12% 13% -82 bps Depreciation 477 419 14% Net Other Income -156 -174 18 mn Profit before Tax 234 226 3%
Slide 38: Business Mix
Business Mix H1FY11 System Wide Revenues H1FY12 % Change Corporate Corporate 29% 30% Individual +12% Individual Schools 63% Schools Individual 8% Schools +9% 7% 63% Corporate +14% H1FY11 H1FY12 EBITDA SBS Corporate Change 28% Corporate Individual 60% Individual -1% 34% Individual 56% Schools 12% Sch
Slide 39: Individual Learning Solutions
Individual Learning Solutions Rs. Mn H1FY12 H1FY11 YoY FY'11 YoY System wide Revenues 6,858 6,149 12% 11,153 10% Net Revenues 2,981 2,630 13% 4,681 10% EBITDA 489 494 -1% 1,061 7% EBITDA % 16% 19% -239 bps 23% -43 bps H1FY12 Enrolments: Global enrolment up 7%, Career enrolments grow 9%, Banking en
Slide 40: School Learning Solutions
School Learning Solutions Rs. Mn H1FY12 H1FY11 YoY FY'11 YoY Net Revenues 808 744 9% 1,481 -26% EBITDA 96 95 1% 169 -43% EBITDA % 12% 13% -95 bps 11% -336 bps H1FY12 Non GSA revenue up 24% YoY, contributed 43% of the revenue mix 306 Non Government schools added Total Order Intake of Rs. 1,125
Slide 41: Corporate Learning Solutions
Corporate Learning Solutions Rs. Mn H1FY12 H1FY11 YoY FY'11 YoY Net Revenues 3,260 2,864 14% 5,835 8% EBITDA 296 231 28% 471 8% EBITDA % 9% 8% 102 bps 8% 1 bps H1FY12 17% Volume growth , MTS grows 59% Adverse exchange impact in revenue of Rs. 81 million (~3% of revenue YoY) and adverse exchange
Slide 42: Skill Building Solutions
Skill Building Solutions-pending Rs. Mn H1FY12 H1FY11 YoY Net Revenues 1 0 1 mn EBITDA -13 0 -13 mn H1FY12 NIIT entered into joint venture with National Skills Development Corporation(NSDC) Largest Public Private Partnership for skill building To train 7 million students in 1,500 centres acros
Slide 43: Sharpening The Edge
THE EDGE SHARPENING THE EDGE
Slide 44: ILS: Realigning For Higher Growth
ILS: Realigning For Higher Growth • Cloud Campus: Embedding VSAT based delivery, across centers and online portal to expand reach and increase efficiency • New products to address changing preferences • Higher end segment: New products (ERP, business analytics etc) launched to cater to this segment
Slide 45: SLS: Reprioritization Of Portfolio
SLS: Reprioritization Of Portfolio • Restricted participation in fresh ICT contracts along with aggressive receivables follow up • Increased attention on private schools – Increased size of sales force during the year – New comprehensive solution launched – Strengthened the leadership team • These s
Slide 46: CLS: Focus On Higher Margin Annuity Streams
CLS: Focus On Higher Margin Annuity Streams • Focus on higher margin annuity based businesses – Managed Training Services: sharpened the value proposition of the offering • Significant improvement in business volume and profitability – Volume growth 17% – Share of MTS increased to 23% of CLS revenue
Slide 47: NIIT: Overall
NIIT: Overall NIIT’s core competencies, acquired over its 3 decades of existence, will remain foundational to its future Pedagogy Creation of quality learning materials Technology Distributed education process management Partnerships Building sustainable partnerships 47
Slide 48: NIIT: Overall
NIIT: Overall 1. Higher Margins through: – Volume growth – Product mix change – Shared capacity – New delivery models 2. ROCE improvement due to: – Better margins – Capital redeployment 4. Creating Platforms For Growth To build on NIIT’s existing strengths – ILS: Cloud Campus – SLS: Private Schools
Slide 49: Growth Platforms Gain Momentum
Growth Platforms Gain Momentum Most Trusted Brands in Education: Cloud MTS NGuru SBS Campus • Joint venture Economic • 6 global • NGuru with NSDC to Times – Nielson • Rolled out to customers reaches 46% train 7 million Survey 190 Centers • Revenue of SLS students • Enrolments potential of revenue •
Slide 50: Leadership in the Century of the Mind
Leadership in the Century of the Mind 50